In Headley v. Stillwater Insurance Group (unreported), the trial court granted summary judgment to an insurer in a case involving coverage for the collapse of a home foundation. The policy at issue contained water and earth movement exclusions with an anti-concurrent clause (“ACC”). Such a clause precludes coverage for losses resulting in any manner from and excluded cause. The lower court held that the water and earth movement exclusions barred coverage for the loss due to the ACC clause. On appeal, the Appellate Division affirmed the decision and the insured’s case was dismissed. The insured’s home suffered property damage after
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Monthly Archives May 2023
NJ Appeals Court Finds Mode-of-Operation Principle Applicable to Self-Service Bagel Shop in Premises Liability Claim
In a premises liability case involving a slip and fall, the New Jersey Appellate Division reversed the trial court’s grant of summary judgment to a business owner on the basis that the court failed to apply the mode-of-operation standard to the facts of the case. In Aly v. A&H Bagels (unpublished), the Appellate Court determined that the self-service nature of the bagel store required the court to examine the store’s duty of care differently because of the inherent hazard caused by that type of business operation. In this case, Defendant owned a bagel shop where customers purchased products, such as
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NY Trial Court Enforces Vacancy and Water Damage Exclusions to Bar Coverage for Water Damage Claim
The Supreme Court-New York addressed a case where an insured sued an insurer after the insurer denied its claim for water damage to a restaurant caused by frozen pipe bursts in sprinkler pipes and domestic water lines. In Arrpei LLC v. Public Service Mutual Insurance Company (“Public Service”), the court granted summary judgment to the insurer on the basis that the policy’s Vacancy and Water Damage Provisions precluded coverage because it was undisputed that the restaurant had been vacant and without heat for several months before the loss. The facts regarding the loss are straightforward. Public Service’s policy contained a
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